The National Association of Road Transport Owners (NARTO) has attributed the recent stability of the Nigerian naira to the Federal Government’s removal of the fuel subsidy and the expansion of domestic refining capacity.
Speaking during an interview on Channels Television’s The Morning Brief, NARTO National President, Yusuf Othman, said the subsidy removal had significantly reduced pressure on the foreign exchange market by cutting the country’s dependence on imported petrol.
“We have all along been clamouring for the removal of subsidies, and it is for the benefit of everybody, including Nigeria,” Othman said.
Although Nigerians were feeling the impact of higher fuel prices, he said the policy had contributed to improved stability in the foreign exchange market.
“Although we are feeling the pain in our pockets, you’ve noticed that the naira has been stable for a long time. One of the reasons for this stability is the withdrawal of the subsidy and local refining, so there is not as much pressure on the demand for dollars,” he said.
Othman’s comments come amid ongoing debate over the economic impact of the subsidy removal and the growing contribution of domestic refineries to Nigeria’s fuel supply.
The Dangote Refinery, Africa’s largest oil refinery, began producing petrol in September 2024, marking a major development for Nigeria, which had long depended heavily on expensive fuel imports despite its status as a major oil producer.
The 650,000-barrel-per-day facility, owned by Nigerian businessman Aliko Dangote, had earlier commenced production of diesel and aviation fuel in January 2024.
Nigeria’s reliance on imported petrol had contributed significantly to foreign exchange demand, particularly because of the country’s limited domestic refining capacity.
The Federal Government announced the removal of the fuel subsidy during President Bola Tinubu’s inauguration in May 2023. Following the policy change, petrol prices rose sharply from about N200 per litre to as high as N1,300 in some locations.
Opposition politicians and other critics have continued to call for a reversal of the policy, blaming the subsidy removal for worsening inflation and the rising cost of living.
Among those advocating a change is the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, who has pledged to restore the fuel subsidy if elected in the January 2027 presidential election.
Peter Obi of the Nigeria Democratic Congress (NDC), however, has taken a different position, saying that while subsidy removal should remain, the government must ensure that the funds saved are properly utilised for the benefit of Nigerians.
The Federal Government has maintained that there will be no return to the subsidy regime, arguing that reversing the policy could undermine the economic gains recorded over the past three years.
The government has also said subsidy removal has increased revenues available to the Federal Government and states, enabling them to invest more in infrastructure and other development priorities.
